How to Compare Table Funding Providers: 8 Questions for Lenders

Table funding providers fund a private lender's loan at closing and take the assignment of the loan right away, and Lender Capital suggests comparing them on eight points: which loans qualify, whether one funder funds the whole loan, when they commit, what you earn, who services the loan, what diligence they run, what you sign, and how they handle problems. Rate alone is the wrong test. A funder that quotes well and then re-prices at the closing table costs you more than one with a slightly higher rate and certainty to close.

This guide is for bridge, fix-and-flip, construction and DSCR lenders choosing where to send loans. For the basics, start with what table funding is. To see the main types of funders side by side, read capital providers for private lenders.

Who provides table funding?

Table funding capital comes from several kinds of sources, and most lenders end up with more than one:

• Institutional lenders and loan buyers that fund loans from lenders who meet their approval standards.
• Private credit funds, family offices and other investors that fund loans through a platform or a direct relationship.
• Placement platforms that match each loan to a funder whose criteria it fits. Lender Capital is one: it is not a lender and never funds a loan with its own money. Capital partners fund the loans.

Each type behaves differently on approval, speed and what you give up, which is why the questions below matter more than any list of names. Before relying on any provider's published terms, check them on its own site, since programs change.

Eight questions to ask any table funder

#	Question	Why it matters
1	Which loan types, states, sizes and leverage do you fund?	Many funders exclude construction, light-rehab or certain states. A mismatch wastes weeks.
2	Does one funder fund the whole loan?	A single funder avoids split closings, co-ordination between several investors and partial funding.
3	When do you commit, and what can change it?	Ask what a commitment depends on, and whether the price can change after your borrower is under contract.
4	What do I earn after all fees?	Add up points kept, any placement or broker fee, and the spread between your note rate and the funder's rate.
5	Who services the loan and owns the borrower relationship?	Some funders take servicing and the borrower contact. Others leave both with you.
6	What diligence do you run, and what do you need from me?	A funder that reviews the full file before committing is slower up front and surer at closing.
7	What do I sign, and what reps and repurchase terms apply?	Read the repurchase and indemnity terms. They decide who carries the cost if a loan has a defect.
8	What happens if the loan goes bad?	Know in advance who runs a workout, what the funder expects from you, and whether you owe anything.

How to compare the answers

Certainty to close

Ask for the funder's closing conditions in writing, and compare them with the commitment you give your borrower. If the funder can walk away or re-price for reasons you do not control, you are carrying that risk.

Your economics

Use a worked example with the same loan for every funder. For example, hypothetically, a $500,000 loan at a 12% note rate with 2 points and a funder rate of 10% leaves a 2% spread plus the points, before any placement fee. Run each funder's terms through the same numbers, or use the lender spread calculator.

Control after closing

A funder that takes servicing may also contact your borrower. If your relationship is the asset you are building, ask about this before the first loan, not after.

When a warehouse line is the better fit

Table funding is not always the right tool. A warehouse line can earn more per loan because you keep all the interest above the line's cost, and it lets you hold loans you want to keep. The trade-off is your cash in every loan, covenants, margin calls and often a guarantee. See table funding vs a warehouse line for the full comparison and the warehouse line alternative page for how per-loan placement differs.

Key takeaways

• Compare table funders on eligibility, certainty, economics and control, not rate alone.
• Prefer one funder that funds the whole loan and reviews the file before committing.
• Run the same hypothetical loan through every funder's terms.
• Get repurchase, servicing and default terms in writing before the first loan.
• Many lenders use more than one funder, and a line for loans they want to keep.

Frequently asked questions

Which companies provide table funding for bridge and fix-and-flip lenders?

Institutional loan buyers, private credit funds, family offices and placement platforms all provide it, each with its own eligibility rules and approval process. Check each provider's current criteria on its own site, since programs change.

Is table funding the same as correspondent lending?

They are related but different. In table funding, the funder's money closes the loan and the loan is assigned to it at once. A correspondent closes in its own name and then sells the loan to an investor.

Do I need a warehouse line to use a table funder?

No. Table funding is a way to close loans without a credit line, because the funder supplies the money at closing.

How Lender Capital fits

Lender Capital is a business-to-business platform that places each loan with one capital partner whose criteria it fits. The partner sees the full file before committing and funds the whole loan at closing. The lender keeps its points, less the placement fee, earns a yield spread, and keeps servicing and the borrower relationship. The placement fee is paid only if the loan funds. Lenders can apply here, and capital partners can apply here.